Russell Puts Out Adds, Drops in Index
Reconstitution

June 13, 2005 (PLANSPONSOR.com) - Russell Investment
Group has released its preliminary lists of companies that
will join or leave the broad-market Russell 3000 Index when
Russell's family of US equity indexes is reconstituted June
24.

The list indicates 208 companies will move into the
Russell 3000 index – fewer than last year’s 323
companies and far less than the 10-year average of 455,
according to a news release. Russell also posted a
preliminary membership list for the new Russell Microcap
Index.

“We see fewer additions in 2005 in large part
because Russell enhanced the ability of our indexes to
reflect the market by adding eligible IPOs each quarter
since September,” Lori Richards, senior product
manager for Russell indexes, said in the news release.

Among the 12 sectors that comprise the broad-market
Russell 3000, the weighting of each will remain relatively
consistent after the index is reconstituted, Russell said.
The weighting of financial services-related stocks, for
example, is expected to increase from 22% to 22.1%. The
total market value of the Russell 3000 will likely increase
to $14.3 trillion in total capitalization, indicating the
broad market rose by $1 trillion from this point last
year.

Among the additions slated for inclusion this year are
42 firms in the Financial Services sector, 37 in the Health
Care sector, 34 in the Consumer Discretionary &
Services sector and 31 in the Technology sector, according
to the news release. The deletions list is dominated by
firms in two sectors: Health Care (56) and Technology
(48).

Stocks ranking smaller than the largest 3,000 US-based
firms will settle into the new Russell Microcap Index.